LONDON, Sept. 20, 2023 /PRNewswire/ -- Bacchus Capital is pleased to note that in recent trading on the LSE, Yellow Cake plc (AIM: YCA) — founded and established by Bacchus Capital to be a specialist company operating in the uranium sector, with a view to holding physical uranium for the long term — has surpassed a market capitalisation of £1 billion. Yellow Cake was listed by Bacchus Capital via an IPO in July 2018, with a valuation and raising of £170 million. Performance since the IPO positions Yellow Cake as one of the best performing metals and mining stocks on the LSE over the last five years.
In 2017, Bacchus Capital identified the systemic misalignment of uranium's near to mid-term supply and demand, where flat or declining production contrasted sharply against growing demand, underpinned by an expanding global fleet of nuclear reactors.
Following the IPO, Yellow Cake acquired 8.4 million lbs. of U3O8 at an average price of US$21.10 /lb. In the ensuing time period, where the uranium spot price increased to US$65.50 /lb., Yellow Cake purchased an additional 11.8 million lbs to take its total uranium holdings to 20.2 million lbs.
The underlying investment thesis for Yellow Cake was, and remains, that with low-carbon baseload nuclear power essential to meet net zero and an expected shortfall of mine supply, the uranium price will need to meet or exceed the incentive price of sufficient new production to match demand. Many near-term project developers are anticipating a required incentive price well in excess of the current uranium spot price.
We would like to thank our supportive partners working with Yellow Cake to achieve this milestone as we look forward to achieving the next significant marker.
Peter Bacchus, Chairman and Chief Executive of Bacchus Capital said:
"Reaching the significant milestone of a one billion sterling valuation is a credit to all involved, and I extend my congratulations to Andre and the full board and management team, as well as our partners and investors at the IPO and subsequently. The success of this venture was never in doubt, but its performance has truly excelled. Yellow Cake brought a new asset class to the UK investment market and highlighted the critical role that nuclear must play in addressing climate change and meeting net zero commitments."
Further information:
Bacchus Capital Advisers
Peter Bacchus
Richard Allan
Tel: +44 (0) 203 848 1640
Powerscourt
Peter Ogden
Tel: +44 (0) 779 3 85 8211
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